There are tax rules governing what salaried doctors can claim in expenses – they are strict and have far tighter restrictions than rules that apply to self-employed consultants and GP’s. The expense must be incurred ‘wholly, necessarily and exclusively’ of and for the professional duties of the doctor in question.
HMRC does permit claims against these costs but it must be remembered that when the hospital pays these costs, or reimburses the doctor, no tax relief will be permitted against them.
The time frame to reclaim tax relief is four tax years, and can be processed either in writing, or on a self assessment tax return.
What tax relief can I claim for?
Professional fees into many professional bodies can be claimed for eg General Medical Council and Royal College of General Practitioners. In the same way professional indemnity insurance into the Medical Defence Union is tax deductible.
Hospital doctors are classed as employees and must therefore use the fixed profit car scheme when claiming motor expenses. This system reimburses 45p per business mile up to 10,000 miles with 25p for each additional mile over that. Receipts are not required but it is important to justify the claimed number of business miles. As with any other role, commuting is not classed as “business travel”.
Tools and equipment
A doctor may purchase medical equipment and claim for reimbursement so long as the equipment is ‘wholly, necessarily and exclusively’ for their working role. Any purchase made by the doctor may be considered for this.
There may be some cases where the doctor wishes to gain an additional qualification, permitting him or her to operate as a specialist in another area. Such training courses and qualifications are not tax deductible as they are considered “capital” in nature. If the course is determined vital to the role and that the fees are incurred ‘wholly, necessarily and exclusively’ in the doctor’s employment, then the fees are likely to be tax deductible.
How do I make a claim?
247 FINANCE ADVICE LTD offer a tailored service to help doctors and other health professionals reclaim what they are entitled to. We have the knowledge and professional expertise to ensure you are reimbursed with the maximum possible tax rebate in the shortest time.